Small BusinessSlowdown hits remittances, says Western Union
With the impact of global slowdown still persisting across countries, there may be a dip in remittances inflow into the country in 2009, according to Rajesh Mehta, director marketing – South and South East Asia, Western Union Services India.
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There has been an almost 13 per cent dip in remittances inflow into the country, at $22.8 billion during the first half (January-June) of 2009, against $26.2 billion during the same period last year, said Mehta. Last year, India was the largest recipient of remittances at $50 billion.
“This year, we are anticipating a slight slowdown, which is already visible so far during the first half of this year,” he said. Total inward remittances during the January-March 2009 was at $9.5 billion, against $14 billion same period 2008. In April-June 2009, it stood at $13 billion, against $12.2 billion last year same time, according to the Reserve Bank of India data. Western Union registered a 16 per cent growth in volumes, and eight per cent growth in revenues during the first half of calendar year 2009, said Mehta. Remittances from the Gulf, a major source of inward remittances to India , dropped due to the slowdown in the construction sector, he said.
While there has been a slowdown in remittances from the Gulf countries, remittances to India have increased from countries like Malaysia, Singapore, Australia and parts of Europe and Africa. “We constantly keep monitoring the various corridors to understand the migration and remittances trend. Though there has been a significant slowdown in remittances from the Gulf, the losses from that corridor have been offset by various other markets such as Malaysia, Singapore, Australia and parts of Europe and Africa,” he said.